Featured Product

    Australian Regulators Urge Firms to Adhere to ISDA Fallbacks Protocol

    October 13, 2020

    APRA announced that Australian regulators (APRA, the Australian Securities and Investments Commission, and the Reserve Bank of Australia) strongly urge Australian institutions to adhere to the ISDA Protocol and Supplement. ISDA has announced that it will launch the 2020 IBOR Fallbacks Protocol and an associated Supplement to the 2006 ISDA Definitions on October 23, 2020. All financial and corporate institutions that use derivatives contracts referencing London Inter-bank Offered Rate (LIBOR) are strongly encouraged to review and adhere to the protocol by its effective date of January 25, 2021.

    While the regulators welcome the progress of LIBOR transition in Australia to date, continued focus and effort are necessary, as highlighted in the APRA communication. Adherence is an important step toward the orderly transition of LIBOR-referenced derivatives contracts. It is critical to the mitigation of both individual entity risks and systemic risks associated with the discontinuation of LIBOR. The 2020 IBOR Fallbacks Protocol and associated Supplement to the 2006 ISDA Definitions are needed to implement robust fallback provisions for derivative contracts referencing key IBORs, including the London Interbank Offered Rate (LIBOR). The protocol and supplement are informed by extensive consultation with industry, including in Australia. FSB has also released a statement encouraging broad and timely adherence to the protocol. Industry-wide adoption of the fallbacks protocol is expected to significantly reduce the risks of contractual disputes, litigation, and frustration by creating a consistent approach to fallback rates when LIBOR comes to an end. 

     

    Related Links 

    Keywords: International, Asia Pacific, Australia, Banking, Securities, LIBOR, IBOR, Derivatives, Benchmark Reforms, Benchmark Fallbacks, ISDA, APRA

    Related Articles
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    News

    SNB Updates NSFR Forms and FINMA Consults on Operational Risk Circular

    The Swiss National Bank (SNB) published Version 1.2 of the reporting forms (NSFR_G and NSFR_P) on the net stable funding ratio (NSFR) of banks, along with the associated documentation.

    May 10, 2022 WebPage Regulatory News
    News

    US Agency Publications Address Basel, Reporting, and CECL Developments

    The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances

    May 09, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8191